Winter 2026 Mortgage MArket Update

4 February, 2026

The mortgage market continues to show strong resilience through the winter months, driven by lower interest rates alongside the gradual easing of lending criteria and affordability restrictions. 

We’re also starting to see early signs that rental demand is cooling from its previous record highs, suggesting a clear shift in behaviour from tenants towards homeownership.

This trend is reflected in rising levels of first-time buyer enquiries, as well as an increasing range of mortgage products designed specifically to support those taking their first step onto the property ladder.

Just this week, Santander launched a new first-time buyer product requiring a deposit of just 2% of the purchase price — the first time in many years that one of the major high-street lenders has introduced a product below the traditional 5% threshold.

With further Bank of England base rate cuts anticipated as we approach spring, there’s a growing sense of optimism around mortgages becoming both more affordable and easier to access.

As always, please get in touch with one of our mortgage advice partners, based in our sales offices for up to date advice on interest rates and mortgage criteria.